Sharjah Mainland Business Setup
Starting a business can be complicated. Many entrepreneurs struggle with choosing the right location and understanding local regulations. Sharjah Mainland business setup offers an attractive solution.
Sharjah, part of the United Arab Emirates (UAE), is ideal for both service-oriented and industrial sectors. It’s known for its strategic location and favorable business environment. We’ll cover benefits, types of licenses, process to set up a business, required documents, and steps to obtain a Sharjah business license.
Benefits of Company Setup in Sharjah Mainland
Setting up a company in Sharjah Mainland offers numerous advantages for businesses looking to establish a presence in the UAE. Businesses also enjoy investor-friendly policies, a strategic location and diverse opportunities in various sectors.
Strategic Location and Market Access
Sharjah is strategically located approximately 20 minutes away from Dubai, making it an ideal choice due to its easy-to-access major markets. It connects key zones for trading business across the UAE and the Gulf Cooperation Council (GCC).
With its own international airport and three seaports, Sharjah is a hub for marine and shipping sectors. Companies in Sharjah Mainland can use these facilities to reach global markets quickly. The Hamriyah Free Zone supports ocean cargo and sea freight businesses. Its strategic location helps companies cut costs on shipping and logistics.
Firms also gain fast access to both local and international clients. The ease of doing business here attracts many investors looking for diverse business opportunities in varied economic sectors.
Diverse Economic Sectors
Sharjah Mainland business setup offers diverse economic sectors. Flourishing industries include trading & retail, beauty parlors, cleaning services, hotels & tourism, healthcare, education, manufacturing, and professional services. This variety allows a range of business types to enhance their presence in Sharjah Mainland.
The region is known as an industrial powerhouse. It draws over 50,000 global businesses to set up operations due to its conducive environment. The education sector also finds great support in Sharjah Mainland.
Favorable Business Regulations
Sharjah Mainland has become the top choice as it offers numerous advantages like zero corporate and personal taxes. Businesses can keep more of their earnings. There is no minimum capital requirement, making it easy for new businesses to start. The process is simple and less costly.
Political stability in Sharjah makes it a safe place for investments. The labor cost is low but the workforce is skilled. This helps companies save money while maintaining quality work.
Compliance requirements include Ultimate Beneficial Ownership (UBO), Economic Substance Regulations (ESR), and Anti-Money Laundering/Combating the Financing of Terrorism (AML-CFT). Failing to comply with these rules may lead to penalties or jeopardize obtaining a trade license.
Submit Enquiry
Key Takeaways
- Operating in Sharjah offers a strategic location for businesses near Dubai with access to key markets and has its own airport and seaports.
- Sharjah Mainland is one of the leading business spots, offering zero corporate and personal taxes, no minimum capital requirement, and low labor costs.
- There are various business licenses available to conduct business: commercial for trading, service for healthcare and education, industrial for manufacturing.
- Different types of business entities include LLCs, Partnership Companies, Branch Companies, and Public/Private Shareholding Companies.
- Setting up involves registering with the Sharjah Economic Development Department (SEDD) after providing necessary documents like MOA/AOA, business plan, passport copies.
Process of Business Setup in Sharjah Mainland
Setting up your business in Sharjah Mainland is simple. Sharjah Mainland business setup involves walking through certain steps and having the right documents ready.
Required Documents for Company Registration
A complete business registration application is essential. Include a detailed business plan. You need a National ID and notarized MOA (Memorandum of Association), and AoA (Articles of Association). Also, submit passport copies for all partners involved.
You must provide a Power of Attorney if someone else handles the process. Bank reference letters show financial stability. Proof of residence and a board resolution are necessary too. Lastly, ensure you have a lease agreement for your business space in Sharjah Mainland.
Steps to Obtain a License for Business in Sharjah Mainland
When looking for a business setup, the first step is to identify your business activity. This will help you choose the right license type, such as commercial, service, or industrial. Next, assign a local sponsor or partner if there is a need for a local sponsor. This is required for many businesses in Sharjah Mainland.
Decide on the legal company structure in Sharjah Mainland. Common types are LLCs and partnerships. Reserve a unique company name that fits UAE regulations. Then the next step is company registration by submitting a company registration form in Sharjah with the Sharjah Economic Development Department (SEDD).
Apply for the relevant business license you need based on your selected activity and structure. Draft the Memorandum of Association (MOA) with care to include all necessary details about roles and shares.
Sign a lease agreement for office space suitable for your business needs. Obtain any external approvals specific to your industry or activity from relevant authorities.
Pay the required license fee at SEDD once all steps are completed. Finally, receive your trade license to legally start operations.
Submit Enquiry
Types of Licenses Available for Sharjah Mainland Businesses
One key advantage of the Sharjah Mainland business setup is that Sharjah involves several types of business licenses. Each license type serves different business activities and needs.
Commercial License
A commercial license in Sharjah Mainland is ideal for trading and retail activities. Businesses with this license can engage in buying, selling, and exporting goods both within the UAE and internationally. This makes it easier to access a broad market and attract various customers. Companies must obtain approval from the Sharjah Economic Development Department (SEDD) to get a commercial license. Required documents include Articles of Association (AOA), Memorandum of Association (MOA), proof of identity, national ID card, utility bill, business plan, lease agreement, and power of attorney if needed. Once these documents are submitted and approved, businesses can start operating legally in Sharjah Mainland.
Professional License
Any individual entrepreneur or company who provides skilled services such as consultancy, legal, or medical services in Sharjah Mainland needs to obtain a professional license. These services need to be in a specific field that needs training and expertise. This license is necessary for practicing regulated professions in Sharjah Mainland.
To acquire the professional license you will need to provide some documents such as your business plan and copies of your passport to the Department of Economic Development (DED) to get approval. Following the approval of the business name, you can go on and register your business to obtain the license that will allow you to offer necessary services in Sharjah and the rest of the world.
Service License
A service license is ideal for businesses in healthcare, education, and professional services. With this license, you can offer services both inside and outside the UAE. This flexibility allows companies to expand their market reach.
To get a service license in Sharjah Mainland, gather the necessary documents like your business plan and passport copies. Submit these papers to the Department of Economic Development (DED). After an initial approval, proceed with registration steps to secure your business license.
Industrial License
An Industrial license is essential for businesses involved in manufacturing and industrial activities. Once an industrial license is issued, it allows companies to produce, package, and assemble products. This license also permits the transportation of goods within Sharjah Mainland and beyond. Manufacturing units such as factories need this license to operate legally.
There are specific steps required to obtain an industrial license. You must submit a detailed business plan and factory layout to authorities. Businesses should ensure compliance with health, safety, and environmental regulations set by the UAE government. With an Industrial License, you can engage in large-scale production activities while benefiting from Sharjah's strategic location for market access.
Types of Business Entities in Sharjah Mainland, Dubai
Sharjah Mainland offers several types of business entities. Each has its own features and benefits. This variety allows you to choose the best fit for your needs. Read more to discover which entity suits your business most.
Limited Liability Company (LLC)
A Limited Liability Company (LLC) is the most common business entity in Sharjah. It offers many benefits, including limited liability for business owners and flexibility in management. An LLC company in Sharjah allows you to protect your personal assets from company debts.
You can enjoy 100% full ownership of your company located in foreign countries when setting up an LLC in Sharjah Mainland. This makes it easier for international entrepreneurs to start their business here. The process is straightforward and involves fewer legal hurdles compared to other regions.
Partnership Company
A Partnership Company includes two or more partners. These partners can be from local companies, foreign companies, or both. Each partner shares profits and losses as per their agreement. Setting up a partnership company in Sharjah Mainland offers flexibility.
Partners can manage the business together. Partnership companies must follow UAE laws and regulations. They usually need to register with the Department of Economic Development (DED) as part of the company registration in Sharjah. This ensures the business meets all legal requirements. Such companies often benefit from tax incentives and access to government contracts. A corporate bank account is also essential to start your business operations smoothly.
Local Service Agent License Company / Sole Proprietorship
It is a sole proprietorship that needs one single owner. Foreign investors require a UAE national to become local service agents(LSA). This structure enables foreign entrepreneurs to invest in the UAE without the LSA having any right over the company’s share or ownership mainly targeting the professional service providers.
Business setup consultants in Sharjah can help entrepreneurs navigate the legal requirements for establishing a sole proprietorship, ensuring compliance with local regulations. As a requirement to open an LSA, there are documents that should be tendered to the relevant authorities to enhance the application process.
Branch Companies
A branch company allows an existing business to expand in Sharjah. It offers the same privileges as the parent company. This means that it can conduct all activities permitted under its main license.
Setting up a branch company is beneficial for firms wanting quick market access. Businesses in diverse sectors, like retail and services, often choose this option. A branch gets full support from Sharjah’s favorable business regulations.
To open a branch, you need specific documents. These include a copy of the parent company's registration certificate and a notarized power of attorney. You must also provide proof of financial capability. The process ensures your branch operates smoothly within UAE laws.
Public/Private Shareholding Company
A Public Shareholding Company allows raising capital by selling shares to the public. This structure suits large-scale operations. An example is Air Arabia, a major airline in the UAE. Public companies must have at least 10 shareholders. They also need a minimum share capital of AED 10 million.
A Private Shareholding Company raises funds through private shares. It requires at least three shareholders and a minimum share capital of AED 2 million. Both types offer limited liability, meaning investors' risk is only what they invested in shares. These companies help businesses grow fast and gain trust from clients and partners.
In Sharjah Mainland, you can set up various types of companies such as sole proprietorships, limited liability companies (LLCs), public joint stock companies, private limited companies, and joint ventures, as Sharjah is one of the best locations for business setup in the UAE.
Yes, depending on the nature of your business and activities, you may need a professional license. Leading business setup consultants can help determine if your specific venture requires one.
Yes, you can hire skilled workers from other countries by obtaining work permits and entry visas for them through the UAE’s regulatory framework.
Yes, besides the Sharjah mainland area with its own benefits like access to local markets and no restrictions on office location; there are also Sharjah free zones that offer tax incentives and simplified processes for Sharjah Mainland company formation.
To begin your new company formation journey in Sharjah Mainland, UAE ; consult experienced business setup consultants who will provide expert business setup services and guide you through acquiring necessary licenses including sharjah mainland license or forming various partnerships like limited partnership or joint stock company.
DISCLAIMER –
This content is for informational purposes only and provided “as is.” We make no guarantees about the accuracy, completeness, or suitability of the information. Any reliance on it is at your own risk. We are not responsible for any losses or damages resulting from its use.
Fees and costs mentioned are for reference only, subject to change, and may vary based on individual circumstances.
